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What is the Wrongful Termination Statute of Limitations?

Have you recently been terminated? Are you wondering if you can still take action against your employer?

When it comes to termination, the wrongful termination statute of limitations should be a significant consideration for both employees and employers. It dictates the legal timeframe within which you can file a claim for wrongful termination. If you are interested in learning more about the wrongful termination statute of limitations and your rights as an employee in Ontario, keep reading.

Wrongful Termination in Ontario

A statute of limitations refers to the legal timeframe within which you can file a claim. Once this period has passed, you may lose the right to pursue legal action. The wrongful termination statute of limitations determines how long you have to initiate legal proceedings against your former employer if you feel that you were wrongfully terminated.

In Ontario, employment laws are governed by the Employment Standards Act, of 2000, which outlines the rights and responsibilities of employers and employees. It sets out the rules for wages, hours of work, leaves of absence and termination of employment. Wrongful termination in Ontario includes dismissal without just cause, dismissal without notice, constructive dismissal, and termination in violation of human rights or other protected rights.

Statute of Limitations for Wrongful Termination

In Ontario, the wrongful termination statute of limitations is generally two years from the date of your termination. This means that if you believe you have been wrongfully terminated, you have a two-year window from the date of your dismissal to initiate legal action against your former employer.

It’s important to note that the two-year period starts from the actual date of your termination. If your employer provided notice of termination but you remained employed during the notice period, your two-year countdown would begin after your notice period concludes.

Termination Pay or Severance Pay?

In Ontario, if you are terminated, your employer may owe you either termination pay or severance pay. The distinction between termination pay and severance pay in Ontario is that termination pay is given to employees terminated without cause. Severance pay is additional compensation provided to eligible employees upon their termination.

Your employer owes you termination pay if they terminated your employment without notice. They may opt to terminate your employment and provide termination pay rather than provide the necessary notice. The amount they owe you is laid out in the Employment Standards Act as a lump sum equal to the amount you would have received during your notice period.

Severance pay is only owed to employees who have worked for the employer for at least 5 years and the employer has a minimum payroll of $2.5 million per year or has terminated at least 50 employees in the past 6 months.

Exceptions and Considerations

When it comes to the wrongful termination statute of limitations in Ontario, there are certain circumstances that may impact your timeline for filing a claim.

Constructive Dismissal

Constructive dismissal refers to circumstances where your employer significantly altered your employment contract and are considered fundamental breaches. If you are to resign due to these fundamental changes, this is considered involuntary resignation. The statute of limitations may start from the date when the changes occurred or from the date the employee resigned.

Human Rights Violations

If your wrongful termination resulted in or was caused by a human rights violation from your employer, alongside filing a claim for wrongful termination you may also choose to file a claim with the Ontario Human Rights Commission. Every employee is entitled to workplace values outlined in the Ontario Human Rights Code, including preventing termination as a result of an employer violating an employee’s human rights.

If your employer violates your rights the statute of limitations, your wrongful termination case may vary depending on your human rights case.

Consult With An Experienced Employment Lawyer

Navigating wrongful termination can be complex, and individual circumstances can vary widely. It is important to contact an experienced employment lawyer to understand your rights and make informed decisions. At Epstein and Associates, we have experience in Ontario labour laws and dealing with wrongful termination cases. Contact us for your free consultation.


This blog is made available by the law firm publisher, Epstein & Associates, for educational purposes. It provides general information and a general understanding of the law but does not provide specific legal advice. Any specific questions about your legal concerns please contact us now and speak to an expert today.